Euro vs Dollar - Eurdollar Daily Spot Market Chart 26th June 2009

Euro vs Dollar - Eurdollar Daily Spot Market Chart 26th June 2009

Yesterday’s candle provided little in the way of a trading signal for the short or even the medium term, as the euro vs dollar continued to consolidate in a relatively narrow trading range as the daily chart now moves towards a pennant pattern.   The closing price for yesterday’s session managed to hold above all three moving averages and the mildly bullish sentiment has carried over in today’s trading session and is being boosted by a rise in the price of crude oil prices which in turn are attempting to vault the $72 per barrel price point.  Crude oil prices have been given a boost by major supply problems in Nigeria as well as comments from the Chinese about US Dollar’s status as a reserve currency.  With the ongoing formation of the pennant pattern we may have to wait for a further catalyst needed to provide some impetus for a dynamic break.  The longer this current sideways consolidation continues, then the more dramatic will be the price move when it comes, a situation that can be likened to a tightly coiled spring which then breaks free.   With relatively minor fundamental news on the economic calendar we may see some typical Friday afternoon price action, ie random and choppy but which may provide some trading opportunities on the long side.  If you do decide to trade then I would suggest using the 5 min chart using tight stops and aiming for small profit targets.

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